1. Polish Securities and Exchange Commission Jacek Socha CHAIRMAN OF THE POLISH SECURITIES AND EXCHANGE COMMISSION DEVELOPMENT OF THE REGULATED CAPITAL MARKET IN POLAND „Development of the regulated capital market in Poland”, Washington, 2003

2. Polish Securities and Exchange Commission Foundations of the Polish public capital market n Dematerialization of securities u all securities admitted to public trading are dematerialised what allows electronic trading, which is faster, safer and less costly n Concentration of trading u trading in public securities is conducted on the regulated market u concentration of supply and demand on one market allows more effective price discovery thanks to larger liquidity n Equal access to information on public companies u disclosure requirements: initial, current, periodic u high standard and quality of disclosed information and data n Strong supervision over the market u admitting securities to public trading u licensing of brokerage houses, brokers and advisors u supervision over market participants „Development of the regulated capital market in Poland”, Washington, 2003

3. Polish Securities and Exchange Commission Organisation of the Polish capital market n Warsaw Stock Exchange: u main stock exchange in Poland u organises trading in bonds and stocks, bonds and derivatives n Central Table of Offers: u regulated over-the-counter market u organises trading in stocks of medium and small enterprises n National Depository for Securities: u central deposit of securities u clears and settles transactions in public securities n Polish Securities and Exchange Commission: u admits securities to public trading u licences and supervises market participants „Development of the regulated capital market in Poland”, Washington, 2003

4. Polish Securities and Exchange Commission 4 NUMBER OF ENTITIES IN PUBLIC TRADING VALUE OF PUBLIC OFFERS [mln USD] „Development of the regulated capital market in Poland”, Washington, 2003

5. Polish Securities and Exchange Commission 5 WARSAW STOCK EXCHANGE INDEX WIGNUMBER OF COMPANIES LISTED ON THE WARSAW STOCK EXCHANGE „Development of the regulated capital market in Poland”, Washington, 2003

6. Polish Securities and Exchange Commission 6 TURNOVER ON THE WARSAW STOCK EXCHANGE [mln USD] CAPITALISATION OF THE WARSAW STOCK EXCHANGE [mln USD] „Development of the regulated capital market in Poland”, Washington, 2003

7. Polish Securities and Exchange Commission 7 SECTORS IN THE CAPITALISATION OF THE WSE SHARE OF INVESTORS IN TURNOVER ON WSE EQUITY MARKET [%] „Development of the regulated capital market in Poland”, Washington, 2003

8. Polish Securities and Exchange Commission 8 CAPITALISATION OF STOCK EXCHANGES IN THE REGION AS % OF GDP - 2002 WSE AMONG MARKETS OF THE REGION (MAIN AND PARALLEL MARKETS) - 2002 „Development of the regulated capital market in Poland”, Washington, 2003

9. Polish Securities and Exchange Commission 9 NUMBER OF COMPANIES AND COMPANY AVERAGE VALUE ON LARGE EUROPEAN MARKETS NUMBER OF COMPANIES AND COMPANY AVERAGE VALUE ON MEDIUM-SIZE EUROPEAN MARKETS Number of companies Company’s value [mln EUR] „Development of the regulated capital market in Poland”, Washington, 2003

10. Polish Securities and Exchange Commission 10 DERIVATIVES TURNOVER ON PARTICULAR EUROPEAN MARKETS - XII 2002 „Development of the regulated capital market in Poland”, Washington, 2003

11. Polish Securities and Exchange Commission 11 NUMBER OF ENTITIES CONDUCTING BROKERAGE ACTIVITIES NUMBER OF INVESTMENTS ACCOUNTS „Development of the regulated capital market in Poland”, Washington, 2003

12. Polish Securities and Exchange Commission 12 NUMBER OF INVESTMENT FUNDS AND FUNDS CORPORATIONS VALUE OF NET ASSETS OF INVESTMENT FUNDS [mln USD] „Development of the regulated capital market in Poland”, Washington, 2003

13. Polish Securities and Exchange Commission Polish capital market in Central Europe n Poland is a country with high economic potential, high stable growth in domestic product and large population; Poland is expected to join European Union in 2004 n Warsaw Stock Exchange is the biggest exchange in Central and Eastern Europe in capitalisation, turnover and number of listed companies n Warsaw Stock Exchange has successfully developed trading in futures on the main index WIG20, taking over many other countries in the region n Warsaw Stock Exchange implemented in 2000 new modern, advanced trading system called Warset; National Depository works on the implementation of the new clearing and settlement system „Development of the regulated capital market in Poland”, Washington, 2003

14. Polish Securities and Exchange Commission International cooperation of the Polish Securities and Exchange Commission n IOSCO: Polish regulations implement IOSCO standards u PSEC is member of Emerging Markets and European Regional Committees u PSEC is in charge of WG-4 Working Group dealing with the matters of enforcement and exchange of information n FESCO: 1998-2000 Chairman of the PSEC was a Chairman of the IOSCO European Regional Committee and acted as an observer in FESCO meetings u 30th may 2001 Poland initiated creation in Warsaw Consultative Group of countries preparing to integrate with the EU to cooperate in this process n Memoranda of Understanding: cooperation and exchange of information u up to now 16 agreements are signed with such countries as France, Italy or Germany, others are negotiated n US SEC: cooperation in development of the Polish market and training „Development of the regulated capital market in Poland”, Washington, 2003

15. Polish Securities and Exchange Commission Best Practices in Public Companies  In 2002 Warsaw Stock Exchange accepted Corporate Governance Code describing best corporate governance standards in public joint stock companies  Corporate Governance Code constitutes a set of detailed rules of conduct addressed to authorities of companies, members of such authorities, as well as majority and minority shareholders  Listed companies are expected to implement these standards or explain the reasons of non-compliance  Disputes between interested parties arising from implementation of the standards will be resolved by the Warsaw Stock Exchange Arbitration Court „Development of the regulated capital market in Poland”, Washington, 2003

16. Polish Securities and Exchange Commission Harmonisation of the Polish Regulations with the European Union Directives  Polish securities regulations have been based on the European Union standards from the foundation of the capital market in Poland  Recent amendments of law fully harmonised Polish regulations with the European Union directives, among others in the following areas:  mutual recognition of prospectuses  single passport for investment firms  mutual recognition of open-end investment funds  introduction of the investor-compensation scheme  Regulations concerning operation of the Single Market will come into force at the date of Poland accession to the European Union  New regulations adopted in the European Union are also being currently implemented in Poland „Development of the regulated capital market in Poland”, Washington, 2003